International Energy Agency: OPEC`s decision could not prevent abundance of supply on market


December 12, Fineko/abc.az. The decision to cut further oil production by OPEC and non-OPEC countries (OPEC+) will hardly prevent the abundance of oil supplies to the market in 2020, according to the monthly report on the oil market of the International Energy Agency (IEA).

According to the report, the global oil market will face a large number of supplies next year: "Despite the reduction in OPEC production, in the first quarter of next year global oil reserves will grow up to 700,000 bpd. The abundance of supplies on the world market will reach 1 million bpd in the second quarter. And it will not be easy for the OPEC countries."

The Agency reduced its forecast on the non-OPEC oil production growth by 200,000 bpd.

It should be noted that last week in Vienna 14 OPEC member countries led by Saudi Arabia and 10 non-OPEC states led by Russia decided to reduce daily production by another 500,000 barrels. As part of this decision, the official Riyadh will support cooperation with OPEC+, by cutting oil production by 167,000 bpd. However, Saudi Arabia will voluntarily cut oil production to 400,000 bpd by 2020. Thus, OPEC and non-OPEC countries will reduce daily crude oil production during the first 3 months of next year by 2.1 million barrels.